System for procuring business in an e-commerce environment

ABSTRACT

A system, method and computer program product are provided for e-commerce. In use, a plurality of suppliers are registered. In addition, goods-related information from customers is received, where the goods-related information is associated with goods. Access to the goods-related information by the suppliers is allowed utilizing a network. Further, offers relating to the goods from the suppliers are received utilizing the network, and the customers are informed of the offers. Still yet, a guarantee is provided to the customers regarding a qualification of at least one supplier with respect to a provision or fulfillment of the offer received therefrom. Such guarantee is provided as a function the at least one supplier or at least one action thereof.

STATEMENT OF PRIORITY

This application is a continuation of U.S. patent application Ser. No.09/796,106, filed Feb. 27, 2001, and allowed on May 17, 2010, thedisclosure of which is hereby incorporated by reference in its entirety.

DESCRIPTION OF THE INVENTION

1. Field of the Invention

The present invention relates to business-to-business (B2B) frameworks,and more particularly to procuring business in an e-commerceenvironment.

2. Background of the Invention

As businesses seek to grow and expand, they encounter the predictablecosts of acquiring new customers or business. The cost of maintaining asales force, marketing functions and ongoing promotions are significant.These acquisition costs generally affect all businesses, regardless ofindustry. Similar costs are incurred by businesses attempting topurchase goods and services. Processing, selecting, screening, andawarding contracts contribute to the growing administrative cost ofdoing business.

Technological advances have allowed many business to conduct businessvia electronic communication mediums. Such business may take the form ofbidding systems, virtual stores, etc. By way of this use of technology,costs associated with business have been greatly reduced. Further, manyadditional techniques have been developed to enhance the manner in whichbusiness is carried out.

For example, U.S. Pat. No. 4,789,928 issued to Fujisaki on Dec. 6, 1988describes an auction information transmission processing systemconstructed by connecting a most significant front computer to a hostcomputer, arranging at least one stage of a plurality of intermediatefront computers and a plurality of least significant front computers soas to be connectable to the most significant front computer in atree-like configuration via communication lines, and arranging aplurality of dealer terminals so as to be connectable to each of theleast significant front computers via communication lines. Each of thedealer terminals has basic pattern data storage means storing patterndata indicative of basic display screen pictures and exhibit datastorage means storing data peculiar to articles on exhibit at anauction. When the system is started up, the host computer transmits aline connection signal to the front computers. After bidding starts,each of the front computers, in response to a command from the hostcomputer, selects a predetermined number solely of bid-up signals fromeach of the dealer terminals and transmits these signals to a frontcomputer. The most significant front computer selects only apredetermined number of bid-up signals and bids up the price of anexhibit being auctioned. After a pledge to buy an exhibit is made, theleast significant front computers identify pledging members based on themember registration data, and data indicative of these members aretransmitted to the front computers of higher significance.

Another computerized bidding system is disclosed in U.S. Pat. No.4,903,201 issued to Wagner on Feb. 20, 1990. Wagner describes acomputerized open outcry exchange system for transacting sales of aparticular futures commodity contract by members of a futures tradingexchange wherein bids to purchase or offers to sell the particularcommodity contract are made by the members through remote terminals andthe exchange computer automatically matches offers and bids to completethe transaction.

A teleprocessing system used by QVC Incorporated is described in anarticle entitled “Fashion Re-Evaluates Flickering Fortunes of TV HomeShopping”, WWD, Nov. 8, 1995 V170 N87. Shoppers call from their homephones to order items advertised on their television screens. As theorders are received, QVC tallies how many people have bought eachparticular sale item. QVC then displays the tally for each item on theviewers' television screens in real-time. This interactive televisionmethod of buying an item provides easy remote access to a sale andreal-time feedback to customers. Unfortunately, it also requires eachhome shopper to pay for items individually, so that the sale is limitedto relatively low cost items.

In addition to the auctions mentioned above, several other on-lineauctions are now being conducted over the Internet. One such auction isdescribed in an article entitled “Cathay Pacific Airways-USA to HoldFirst Ever Internet CyberAuction” Business Wire, Sep. 26, 1995 p9261084. The article states that Cathay Pacific is auctioning off fiftybusiness class seats from Los Angeles to Hong Kong. Registered bidderssubmit concealed bids by electronic mail over a two week biddingsession. The fifty highest bidders at the close of the bidding sessionreceive an electronic mail message instructing them on how to purchasetickets.

Auction Web also has on-line auctions, as described at their world-wideweb site http://www.ebay.com. In this auction system, bidders alsoregister and submit bids through the Internet. Items for sale aregraphically displayed on the bidders' screens, in addition to the bidinformation for each item. Bid information is updated hourly throughouteach two week bidding session. Similarly, Christie's Internationaldescribes “Results of the World's First On-Line Auction” at theirworld-wide web site http://www.christies.com. In Christie's auction,bidders register and submit bids in the same manner as the Auction Webauction.

DISCLOSURE OF THE INVENTION

A system, method and computer program product are provided fore-commerce. In use, a plurality of suppliers are registered. Inaddition, goods-related information from customers is received, wherethe goods-related information is associated with goods. Access to thegoods-related information by the suppliers is allowed utilizing anetwork. Further, offers relating to the goods from the suppliers arereceived utilizing the network, and the customers are informed of theoffers. Still yet, a guarantee is provided to the customers regarding aqualification of at least one supplier with respect to a provision orfulfillment of the offer received therefrom. Such guarantee is providedas a function of at least one supplier or at least one action thereof.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 illustrates an exemplary environment in which the presentinvention may be implemented;

FIG. 2 shows a representative hardware environment associated with thecomputer systems of FIG. 1;

FIG. 3 illustrates a method for procuring business in a bidding typesystem;

FIG. 4 is a block diagram of components illustrating one exemplaryenvironment in which the present invention may be implemented;

FIG. 5 is a flowchart illustrating the bid validator and its method ofoperation;

FIG. 6 is a flowchart illustrating the auction manager and its method ofoperation;

FIG. 7 is a flowchart illustrating the bid manager and its method ofoperation;

FIG. 8 is a flowchart illustrating the electronic mail messenger and itsmethod of operation;

FIG. 9 is a flowchart illustrating the standard auction format and itsmethod of operation;

FIG. 10 is a flowchart illustrating the Dutch auction format and itsmethod of operation;

FIG. 11 is a flowchart illustrating the progressive auction format andits method of operation;

FIG. 12 is a flowchart illustrating the buy or bid sale format and itsmethod of operation;

FIG. 13 is a flowchart illustrating bid quantity determination and itsmethod of operation; and

FIG. 14 is a flowchart illustrating the markdown price adjustmentfeature of the present invention and its method of operation.

DESCRIPTION OF THE EMBODIMENTS

FIG. 1 illustrates an exemplary environment 101 in which the presentinvention may be implemented. As shown, a plurality of computers 102 areinterconnected via a network 104. In one embodiment, such networkincludes the Internet. It should be noted, however, that any type ofnetwork may be employed, i.e. local area network (LAN), wide areanetwork (WAN), etc.

FIG. 2 shows a representative hardware environment associated with thecomputer systems 102 of FIG. 1. Such figure illustrates a typicalhardware configuration of a workstation in accordance with a preferredembodiment having a central processing unit 210, such as amicroprocessor, and a number of other units interconnected via a systembus 212.

The workstation shown in FIG. 2 includes a Random Access Memory (RAM)214, Read Only Memory (ROM) 216, an I/O adapter 218 for connectingperipheral devices such as disk storage units 220 to the bus 212, a userinterface adapter 222 for connecting a keyboard 224, a mouse 226, aspeaker 228, a microphone 232, and/or other user interface devices suchas a touch screen (not shown) to the bus 212, communication adapter 234for connecting the workstation to a communication network (e.g., a dataprocessing network) and a display adapter 236 for connecting the bus 212to a display device 238. The workstation typically has resident thereonan operating system such as the Microsoft Windows NT or Windows/95Operating System (OS), the IBM OS/2 operating system, the MAC OS, orUNIX operating system. Those skilled in the art will appreciate that thepresent invention may also be implemented on platforms and operatingsystems other than those mentioned.

A preferred embodiment is written using JAVA, C, and the C++ languageand utilizes object oriented programming methodology. Object orientedprogramming (OOP) has become increasingly used to develop complexapplications. As OOP moves toward the mainstream of software design anddevelopment, various software solutions require adaptation to make useof the benefits of OOP. A need exists for these principles of OOP to beapplied to a messaging interface of an electronic messaging system suchthat a set of OOP classes and objects for the messaging interface can beprovided.

OOP is a process of developing computer software using objects,including the steps of analyzing the problem, designing the system, andconstructing the program. An object is a software package that containsboth data and a collection of related structures and procedures. Sinceit contains both data and a collection of structures and procedures, itcan be visualized as a self-sufficient component that does not requireother additional structures, procedures or data to perform its specifictask. OOP, therefore, views a computer program as a collection oflargely autonomous components, called objects, each of which isresponsible for a specific task. This concept of packaging data,structures, and procedures together in one component or module is calledencapsulation.

In general, OOP components are reusable software modules which presentan interface that conforms to an object model and which are accessed atrun-time through a component integration architecture. A componentintegration architecture is a set of architecture mechanisms which allowsoftware modules in different process spaces to utilize each otherscapabilities or functions. This is generally done by assuming a commoncomponent object model on which to build the architecture. It isworthwhile to differentiate between an object and a class of objects atthis point. An object is a single instance of the class of objects,which is often just called a class. A class of objects can be viewed asa blueprint, from which many objects can be formed.

OOP allows the programmer to create an object that is a part of anotherobject. For example, the object representing a piston engine is said tohave a composition-relationship with the object representing a piston.In reality, a piston engine comprises a piston, valves and many othercomponents; the fact that a piston is an element of a piston engine canbe logically and semantically represented in OOP by two objects.

OOP also allows creation of an object that “depends from” anotherobject. If there are two objects, one representing a piston engine andthe other representing a piston engine wherein the piston is made ofceramic, then the relationship between the two objects is not that ofcomposition. A ceramic piston engine does not make up a piston engine.Rather it is merely one kind of piston engine that has one morelimitation than the piston engine; its piston is made of ceramic. Inthis case, the object representing the ceramic piston engine is called aderived object, and it inherits all of the aspects of the objectrepresenting the piston engine and adds further limitation or detail toit. The object representing the ceramic piston engine “depends from” theobject representing the piston engine. The relationship between theseobjects is called inheritance.

When the object or class representing the ceramic piston engine inheritsall of the aspects of the objects representing the piston engine, itinherits the thermal characteristics of a standard piston defined in thepiston engine class. However, the ceramic piston engine object overridesthese ceramic specific thermal characteristics, which are typicallydifferent from those associated with a metal piston. It skips over theoriginal and uses new functions related to ceramic pistons. Differentkinds of piston engines have different characteristics, but may have thesame underlying functions associated with it (e.g., how many pistons inthe engine, ignition sequences, lubrication, etc.). To access each ofthese functions in any piston engine object, a programmer would call thesame functions with the same names, but each type of piston engine mayhave different/overriding implementations of functions behind the samename. This ability to hide different implementations of a functionbehind the same name is called polymorphism and it greatly simplifiescommunication among objects.

With the concepts of composition-relationship, encapsulation,inheritance and polymorphism, an object can represent just aboutanything in the real world. In fact, one's logical perception of thereality is the only limit on determining the kinds of things that canbecome objects in object oriented software. Some typical categories areas follows:

-   -   Objects can represent physical objects, such as automobiles in a        traffic-flow simulation, electrical components in a        circuit-design program, countries in an economics model, or        aircraft in an air-traffic-control system.    -   Objects can represent elements of the computer-user environment        such as windows, menus or graphics objects.    -   An object can represent an inventory, such as a personnel file        or a table of the latitudes and longitudes of cities.    -   An object can represent user-defined data types such as time,        angles, and complex numbers, or points on the plane.

With this enormous capability of an object to represent just about anylogically separable matters, OOP allows the software developer to designand implement a computer program that is a model of some aspects ofreality, whether that reality is a physical entity, a process, a system,or a composition of matter. Since the object can represent anything, thesoftware developer can create an object which can be used as a componentin a larger software project in the future.

If 90% of a new OOP software program consists of proven, existingcomponents made from preexisting reusable objects, then only theremaining 10% of the new software project has to be written and testedfrom scratch. Since 90% already came from an inventory of extensivelytested reusable objects, the potential domain from which an error couldoriginate is 10% of the program. As a result, OOP enables softwaredevelopers to build objects out of other, previously built objects.

This process closely resembles complex machinery being built out ofassemblies and sub-assemblies. OOP technology, therefore, makes softwareengineering more like hardware engineering in that software is builtfrom existing components, which are available to the developer asobjects. All this adds up to an improved quality of the software as wellas an increased speed of its development.

Programming languages are beginning to fully support the OOP principles,such as encapsulation, inheritance, polymorphism, andcomposition-relationship. With the advent of the C++ language, manycommercial software developers have embraced OOP. C++ is an OOP languagethat offers a fast, machine-executable code. Furthermore, C++ issuitable for both commercial-application and systems-programmingprojects. For now, C++ appears to be the most popular choice among manyOOP programmers, but there is a host of other OOP languages, such asSmalltalk, Common Lisp Object System (CLOS), and Eiffel. Additionally,OOP capabilities are being added to more traditional popular computerprogramming languages such as Pascal.

The benefits of object classes can be summarized, as follows:

-   -   Objects and their corresponding classes break down complex        programming problems into many smaller, simpler problems.    -   Encapsulation enforces data abstraction through the organization        of data into small, independent objects that can communicate        with each other. Encapsulation protects the data in an object        from accidental damage, but allows other objects to interact        with that data by calling the object's member functions and        structures.    -   Subclassing and inheritance make it possible to extend and        modify objects through deriving new kinds of objects from the        standard classes available in the system. Thus, new capabilities        are created without having to start from scratch.    -   Polymorphism and multiple inheritance make it possible for        different programmers to mix and match characteristics of many        different classes and create specialized objects that can still        work with related objects in predictable ways.    -   Class hierarchies and containment hierarchies provide a flexible        mechanism for modeling real-world objects and the relationships        among them.    -   Libraries of reusable classes are useful in many situations, but        they also have some limitations. For example:    -   Complexity. In a complex system, the class hierarchies for        related classes can become extremely confusing, with many dozens        or even hundreds of classes.    -   Flow of control. A program written with the aid of class        libraries is still responsible for the flow of control (i.e., it        must control the interactions among all the objects created from        a particular library). The programmer has to decide which        functions to call at what times for which kinds of objects.    -   Duplication of effort. Although class libraries allow        programmers to use and reuse many small pieces of code, each        programmer puts those pieces together in a different way. Two        different programmers can use the same set of class libraries to        write two programs that do exactly the same thing but whose        internal structure (i.e., design) may be quite different,        depending on hundreds of small decisions each programmer makes        along the way. Inevitably, similar pieces of code end up doing        similar things in slightly different ways and do not work as        well together as they should.

Class libraries are very flexible. As programs grow more complex, moreprogrammers are forced to reinvent basic solutions to basic problemsover and over again. A relatively new extension of the class libraryconcept is to have a framework of class libraries. This framework ismore complex and consists of significant collections of collaboratingclasses that capture both the small-scale patterns and major mechanismsthat implement the common requirements and design in a specificapplication domain. They were first developed to free applicationprogrammers from the chores involved in displaying menus, windows,dialog boxes, and other standard user interface elements for personalcomputers.

Frameworks also represent a change in the way programmers think aboutthe interaction between the code they write and code written by others.In the early days of procedural programming, the programmer calledlibraries provided by the operating system to perform certain tasks, butbasically the program executed down the page from start to finish, andthe programmer was solely responsible for the flow of control. This wasappropriate for printing out paychecks, calculating a mathematicaltable, or solving other problems with a program that executed in justone way. The development of graphical user interfaces began to turn thisprocedural programming arrangement inside out. These interfaces allowthe user, rather than program logic, to drive the program and decidewhen certain actions should be performed. Today, most personal computersoftware accomplishes this by means of an event loop which monitors themouse, keyboard, and other sources of external events and calls theappropriate parts of the programmer's code according to actions that theuser performs. The programmer no longer determines the order in whichevents occur. Instead, a program is divided into separate pieces thatare called at unpredictable times and in an unpredictable order. Byrelinquishing control in this way to users, the developer creates aprogram that is much easier to use. Nevertheless, individual pieces ofthe program written by the developer still call libraries provided bythe operating system to accomplish certain tasks, and the programmermust still determine the flow of control within each piece after it'scalled by the event loop. Application code still “sits on top of thesystem.

Even event loop programs require programmers to write a lot of code thatshould not need to be written separately for every application. Theconcept of an application framework carries the event loop conceptfurther. Instead of dealing with all the nuts and bolts of constructingbasic menus, windows, and dialog boxes and then making these things allwork together, programmers using application frameworks start withworking application code and basic user interface elements in place.Subsequently, they build from there by replacing some of the genericcapabilities of the framework with the specific capabilities of theintended application.

Application frameworks reduce the total amount of code that a programmerhas to write from scratch. However, because the framework is really ageneric application that displays windows, supports copy and paste, andso on, the programmer can also relinquish control to a greater degreethan event loop programs permit. The framework code takes care of almostall event handling and flow of control, and the programmer's code iscalled only when the framework needs it (e.g., to create or manipulate aproprietary data structure).

A programmer writing a framework program not only relinquishes controlto the user (as is also true for event loop programs), but alsorelinquishes the detailed flow of control within the program to theframework. This approach allows the creation of more complex systemsthat work together in interesting ways, as opposed to isolated programs,having custom code, being created over and over again for similarproblems.

Thus, as is explained above, a framework basically is a collection ofcooperating classes that make up a reusable design solution for a givenproblem domain. It typically includes objects that provide defaultbehavior (e.g., for menus and windows), and programmers use it byinheriting some of that default behavior and overriding other behaviorso that the framework calls application code at the appropriate times.

There are three main differences between frameworks and class libraries:

-   -   Behavior versus protocol. Class libraries are essentially        collections of behaviors that you can call when you want those        individual behaviors in your program. A framework, on the other        hand, provides not only behavior but also the protocol or set of        rules that govern the ways in which behaviors can be combined,        including rules for what a programmer is supposed to provide        versus what the framework provides.    -   Call versus override. With a class library, the code the        programmer instantiates objects and calls their member        functions. It's possible to instantiate and call objects in the        same way with a framework (i.e., to treat the framework as a        class library), but to take full advantage of a framework's        reusable design, a programmer typically writes code that        overrides and is called by the framework. The framework manages        the flow of control among its objects. Writing a program        involves dividing responsibilities among the various pieces of        software that are called by the framework rather than specifying        how the different pieces should work together.    -   Implementation versus design. With class libraries, programmers        reuse only implementations, whereas with frameworks, they reuse        design. A framework embodies the way a family of related        programs or pieces of software work. It represents a generic        design solution that can be adapted to a variety of specific        problems in a given domain. For example, a single framework can        embody the way a user interface works, even though two different        user interfaces created with the same framework might solve        quite different interface problems.

Thus, through the development of frameworks for solutions to variousproblems and programming tasks, significant reductions in the design anddevelopment effort for software can be achieved. A preferred embodimentof the invention utilizes HyperText Markup Language (HTML) to implementdocuments on the Internet together with a general-purpose securecommunication protocol for a transport medium between the client and theNewco. HTTP or other protocols could be readily substituted for HTMLwithout undue experimentation. Information on these products isavailable in T. Berners-Lee, D. Connoly, “RFC 1866: Hypertext MarkupLanguage-2.0” (November 1995); and R. Fielding, H, Frystyk, T.Berners-Lee, J. Gettys and J. C. Mogul, “Hypertext TransferProtocol—HTTP/1.1: HTTP Working Group Internet Draft” (May 2, 1996).HTML is a simple data format used to create hypertext documents that areportable from one platform to another. HTML documents are SGML documentswith generic semantics that are appropriate for representing informationfrom a wide range of domains. HTML has been in use by the World-Wide Webglobal information initiative since 1990. HTML is an application of ISOStandard 8879; 1986 Information Processing Text and Office Systems;Standard Generalized Markup Language (SGML).

To date, Web development tools have been limited in their ability tocreate dynamic Web applications which span from client to server andinteroperate with existing computing resources. Until recently, HTML hasbeen the dominant technology used in development of Web-based solutions.However, HTML has proven to be inadequate in the following areas:

-   -   Poor performance;    -   Restricted user interface capabilities;    -   Can only produce static Web pages;    -   Lack of interoperability with existing applications and data;        and    -   Inability to scale.        Sun Microsystem's Java language solves many of the client-side        problems by:    -   Improving performance on the client side;    -   Enabling the creation of dynamic, real-time Web applications;        and    -   Providing the ability to create a wide variety of user interface        components.

With Java, developers can create robust User Interface (UI) components.Custom “widgets” (e.g., real-time stock tickers, animated icons, etc.)can be created, and client-side performance is improved. Unlike HTML,Java supports the notion of client-side validation, offloadingappropriate processing onto the client for improved performance.Dynamic, real-time Web pages can be created. Using the above-mentionedcustom UI components, dynamic Web pages can also be created.

Sun's Java language has emerged as an industry-recognized language for“programming the Internet.” Sun defines Java as: “a simple,object-oriented, distributed, interpreted, robust, secure,architecture-neutral, portable, high-performance, multithreaded,dynamic, buzzword-compliant, general-purpose programming language. Javasupports programming for the Internet in the form ofplatform-independent Java applets.” Java applets are small, specializedapplications that comply with Sun's Java Application ProgrammingInterface (API) allowing developers to add “interactive content” to Webdocuments (e.g., simple animations, page adornments, basic games, etc.).Applets execute within a Java-compatible browser (e.g., NetscapeNavigator) by copying code from the server to client. From a languagestandpoint, Java's core feature set is based on C++. Sun's Javaliterature states that Java is basically, “C++ with extensions fromObjective C for more dynamic method resolution.”

Another technology that provides similar function to JAVA is provided byMicrosoft and ActiveX Technologies, to give developers and Web designerswherewithal to build dynamic content for the Internet and personalcomputers. ActiveX includes tools for developing animation, 3-D virtualreality, video and other multimedia content. The tools use Internetstandards, work on multiple platforms, and are being supported by over100 companies. The group's building blocks are called ActiveX Controls,small, fast components that enable developers to embed parts of softwarein hypertext markup language (HTML) pages. ActiveX Controls work with avariety of programming languages including Microsoft Visual C++, BorlandDelphi, Microsoft Visual Basic programming system and, in the future,Microsoft's development tool for Java, code named “Jakarta.” ActiveXTechnologies also includes ActiveX Server Framework, allowing developersto create server applications. One of ordinary skill in the art readilyrecognizes that ActiveX could be substituted for JAVA without undueexperimentation to practice the invention.

FIG. 3 illustrates a method 300 for procuring business. Initially, inoperation 302, a plurality of suppliers is registered. In particular,profiles may be maintained on perspective suppliers. Registration may beaccomplished by filling out an on-line registration form or the like. Aqualification process may also be executed to ensure the integrity ofthe suppliers although the risk of forfeiture of performance bond moniesis the major incentive to comply with committed obligations.

In one embodiment, a key difference between this invention and otherprocurement services currently available is that in this instance thesupplier is bidding for the rights to fulfill a contract and notnecessarily directly for the actual contents or components of thecontract. In this embodiment, the amount bid may or not be related tothe actual cost of the units or total value of the goods or servicesbeing delivered as required by the buyer. The bid amount is more alignedwith the expected cost of sales prospecting, contract negotiation, andthe risks associated with the competitive bidding that occurs when anRFI/RFP exercise is being pursued by a plurality suppliers. In operation304, contracts are received from customers. Such contract may be for anorder for goods or services. Again, a standard on-line form may befilled out by the customers (buyers of the goods and/or services) toaccomplish this. The business logic (unique to this invention) ensuresthat contracts are appropriately qualified, categorized and cataloged.

The suppliers are subsequently allowed to access the contracts utilizinga network (i.e. Internet), as indicated by operation 306. This may beaccomplished by sending emails, posting the contracts on an electronicbulletin board, a PDA, a cell-phone, a PSTN attached device such astouch tone or voice activated command enabled telephone, etc. Suchcontracts may represents a specific work order for a set of goods,services, and resources that must be fulfilled within a defined timeframe by the pre-qualified suppliers at a specific price that meets theneeds of the customer.

As such, bids on the contracts may be received from the suppliersutilizing the network. See operation 308. Such bids may be received byan electronic mail message, call center system, on-line form, etc.

Further, in operation 310, the customers are informed of the bids sothat the bids may be accepted. As an option, the present embodiment mayautomatically notify the customers when a supplier bids for theirbusiness. Again, this may be accomplished by sending emails, postings onan electronic bulletin board, etc. The transaction may thus be carriedout with both privacy and security.

Still yet, the suppliers secure a performance bond relating to thecontract for reducing the risk of non-performance by the supplier. Seeoperation 312. As such, all suppliers that want to participate in theexchange are required as defined in the work order to secure aperformance bond. Should the supplier fail to perform, the bond will becashed and the proceeds passed on to the customer to reimburse for anyinconvenience suffered. As such, the bonds ultimately reduce the risk ofnon-performance by the supplier.

As an option, payment of an “Acquisition Fee” may be received from thesuppliers for the cost of acquiring the business. As an option, thepayment may be based on a percentage of price-related terms andconditions of the contract. The “Acquisition Fee” generally may also besome fraction of the costs associated with securing similar contractshad the present exchange medium not existed.

To provide an incentive to use the present invention, the customers mayreceive a portion of the payment received from the suppliers. This maybe a certain percentage of the payment, a graduated flat fee, or thelike.

To generate further revenue, payment of a “Posting fee” may also bereceived from the customers. Similar to the payment received from thesuppliers, the present customer fee may be based on terms and conditionsof the contract.

The present system thus offers significant economic benefits totraditional procurement models. For example, the present invention iscapable of producing incremental revenue to customers from theirpercentage of the “Acquisition fee”. Customers can save money inqualifying and securing suppliers of their needed goods or services.Moreover, suppliers benefit by gaining access to incremental businesschannels at a low cost. Further, customer service is guaranteed throughperformance bonds. Still yet, the present exchange process istransparent once the contract is delivered, thus affording the supplierthe opportunity to manage his or her own customer service.

The present invention thus offers a new, low cost, confidential, andguaranteed method for conducting B2B procurement that will not onlyspeed up the overall process, but afford the customer with incrementalrevenue each time he or she acquires goods or services from anypre-qualified supplier.

In one embodiment of the present invention, the following optional stepsmay be performed:

(a) Registering a plurality of suppliers per category managed by anelectronic “Rules driven” profile detailing delivery capability andbusiness terms which can be supported and accepted by each supplier.

(b) Receiving contracts from customers both electronically via somenetwork infrastructure or manually via a people intensive process.

(c) Standardizing the contracts to create a generic representation ofthe goods or services to be delivered or performed, enabling ease ofcomparison.

(d) Allowing access to the contracts by the suppliers utilizing a securepersonalized profile driven network accessible via the internet andother public communications infrastructures globally.

(e) Receiving bids on the contracts from the suppliers utilizing thenetwork accessible via the internet and other public communicationsinfrastructures globally.

(f) Informing the bidders and customers of the bids via an electronicpersonalized notification system.

(g) Reducing the costs of acquisition and purchase of goods or servicesto a customer by sharing the revenues generated via the exchange withthe exchange operator.

(h) Reducing the cost of sales of products and services by quantifyingthe and defining the costs associated with securing a contract using theexchange's capabilities.

(i) Requiring the suppliers to secure a performance bond relating to thecontract to ensure maximum incentive to fulfill commitment to supplygoods or services.

(j) Guaranteeing the customer a qualified (meets price, delivery timeand quality criteria) supplier for the provision/fulfillment of thegoods or services required.

In another embodiment of the present invention, the aforementionedcontract may take the form of an order for goods or services. Thesuppliers are subsequently allowed to access the contracts utilizing anetwork. This network may be a internet or PSTN accessible using acomputer terminal wireless or wired via a narrow/broadband connection.The information may be accessed using the DTMF touch tone keys on aregular telephone or via voice commands over a wireless or wiredtelephone without any special modification to the device being used foraccess. All the necessary information translation to support theplethora of access terminal devices is performed by the invention aspart of the network intelligence. As such, bids on the contracts may bereceived by the exchange from the suppliers utilizing the network.Further, the customers are informed by the exchange of the winning bidsthat have been accepted by the exchange so that the contract fulfillmentprocess may begin. Still yet, the suppliers secure a performance bondrelating to the contract for reducing the risk of non-performance by thesupplier. In the event that a bidder is unable to perform or fulfill itsobligations, the performance bond is forfeited to the exchange and thesecond place bidder is awarded the contract after a performance bond hasbeen posted and received from the new winner by the exchange.

The bidders may prevented from intentionally bidding up the contracts toeither drive their competitors out of business or increasing the cost ofthe winning bidder by two methods (1) Financial disincentive approachlevies an incremental non refundable bidders fee per transaction so thateach time a bid is made and accepted a modest but significant fee ischarged to the bidder; the winning bidder has this fee credited againstthe contract purchase fee. (2) Technical credit level and heuristicbehavioral modeling algorithm is used monitor bidding and purchasingpatterns; when a phony bid is received although a bid may be acceptedthe bidder may be automatically disqualified after a series of warningsto cease and desist the unauthorized bidding behavior.

A bidding system in which the foregoing concepts may be utilized willnow be set forth. It should be noted that the following example ismerely illustrative in nature, and should not be construed as limitingin any manner. FIG. 4 illustrates a high level block diagram of theelectronic auction system of the present invention. As shown,information from bid form 20 is received by the electronic auctionsystem where it is processed by bid validator 21. Bid validator 21examines the bid information entered by the customer on bid form 20 toensure that the bid is properly formatted, all necessary data ispresent, and the data values entered look credible. Exemplary functionsof bid validator 21 include verifying credit card information entered bythe customer, checking that a complete name and shipping address hasbeen entered, that the proper state abbreviation and zip code have beenentered, that an appropriate bid amount has been entered, and that atelephone or facsimile number has been entered. Once the bid informationhas been validated, the bid validator 21 places the bid in bid database31.

Auction manager 26 preferably frequently queries the bid database 31 tosee if any new bids have been placed. If new bids are found during thequery, then auction manager 26 calculates the current high bidder orbidders and instructs merchandise catalog page generator 25 toregenerate a catalog page with the updated bid information.

Auction manager 26 is also responsible for opening and closing auctions.This entails making merchandise lots available for bidding by customersand disabling their associated buy or bid features on the merchandisepages that have been posted to potential bidders but have closed. Whenauction manager 26 determines that a new lot should be opened forbidding or an available lot should be closed, it instructs merchandisecatalog page generator 25 to create or update the merchandise catalogpages for the appropriate lots.

Electronic mail messenger 27 frequently queries bid database 31 for bidsrecently marked by auction manager 26 as having been outbid or as havingwon an item in a recently closed auction. If such bids are found, theelectronic mail messenger 27 formats an appropriate electronic mailnotification message 24 and sends this message to the customer. Manycustomers read their electronic mail throughout the day, making this aconvenient mechanism for keeping them informed about the status ofmerchandise on which they are actively bidding. Bidders may reply to anelectronic mail notification message 24 informing them that they havebeen outbid by including an increased bid amount in the reply message.An electronic mail bid 22 sent in reply to the notification is receivedby the electronic auction system and processed by bid validator 21 asdescribed above.

FIG. 5 illustrates in detail the procedure of bid validation asaccomplished by bid validator 21 shown in FIG. 4. A bid is received bybid validator 21 and the customer is looked up at step 41 in customerdatabase 28. If no customer record exists for the customer then a newcustomer record is created 42 and placed in customer database 28. Fromthere, the bid information is validated 43 as previously described. Ifthe bid data includes one or more errors, then an error message isreturned 44 to the bidder, preferably in the form of a well-formattedpage posted across the network, itemizing the errors found in the bid.If the bid is valid, as found in step 43, then the bid is placed 46 inbid database 31.

FIG. 6 provides a detailed illustration of the procedures carried out byauction manager 26. Auction manager 26 is preferably a continuouslyrunning system that begins by getting the current time as at step 51. Itthen checks to see if any new items for sale are to be opened byexamining the merchandise database to see if any new merchandise itemsare scheduled to be made available for bidding by customers at or beforethe current time. An operator, or some automated substitute, may uploadmerchandise and scheduling information to the database, as shown in FIG.2. If new merchandise items are scheduled for posting, these items areopened for bidding 52. The auction manager then examines the merchandisedatabase to see if any merchandise items are scheduled to be closed fromcustomer bidding. If so, these items are closed from bidding 53. Auctionmanager 26 then examines the merchandise database to see if anymerchandise items posted with a price markdown feature are scheduled tohave their prices adjusted. If so, the prices of these items areadjusted 54 in accordance with the particular item's price adjustmentparameters. Such parameters may include bidding activity over time,amount of bids received, and number of items bid for. Auction manager 26then updates 55 the bid list for open items by recalculating the currenthigh bidder list and regenerating the merchandise catalog pages 56 toreflect these new bids. This step is more fully described below withreference to FIG. 7.

FIG. 7 illustrates the procedures carried out by the bid manager inupdating the bid list for open items 55 as shown in FIG. 6. The bidmanager begins by checking 61 if there are more merchandise items to beprocessed. If such items are found, the bid manager selects 62 amerchandise item to process and queries 64 the bid database for bids forthis item. These bids are sorted 65 using a variety of differentpriority ranking schemes depending upon the auction method and systemused for the particular merchandise item, as described in more detailbelow. Then, the bids are marked 66 as either successful or unsuccessfuldepending upon the bid price of the respective bids and the quantity ofthe item being bid on relative to the quantity of the item beingauctioned. In a preferred embodiment, a quantity of an item may be putup for auction, and individual bidders may bid on any quantity of theitem desired, up to the quantity of the item being auctioned.

The bid manager then checks 67 to see if there are any active proxy bidsmarked as unsuccessful. A proxy bid is a special bid type that allowsauction manager 26 to automatically bid on the bidder's behalf up to alimited amount established by the bidder when his or her initial bid isplaced. The auction manager will increase the bid as necessary up to thelimit amount. This feature allows the customer to get the lowestpossible price without exceeding a limit preferably established when thebid is entered. If there are active proxy bids marked as unsuccessful,then the bid manager increments 69 the proxy bids by a preset bidincrement. This procedure of sorting 65 marking 66 bids and incrementing69 the proxy bids as required continues until either there are noadditional proxy bids marked as unsuccessful or the proxy limits havebeen reached on the proxy bids. At this point, bid database 31 isupdated 68 with the marked bids. This process is then repeated for eachmerchandise lot open at the current time for bidding by customers.

FIG. 8 illustrates the procedures carried out by electronic mailmessenger 27 which notifies bidders when they have been outbid. Whenmarked bids are updated in bid database 31 as shown in FIG. 7,electronic mail messenger 27 detects 81 the presence of these markedbids and then looks up 82 the customer's electronic mail address andlooks up 83 inventory information on the item desired by the bidder.With this information, electronic mail messenger 27 constructs 84 anelectronic mail message informing the bidder that he or she has beenoutbid. Once constructed, the electronic mail notification message 24 issent to the bidder as shown at step 85. One skilled in the art to whichthe present invention pertains will recognize that the variouscomponents of the electronic auction system can communicate betweenthemselves in a variety of ways. In a preferred embodiment, bidvalidator 21, auction manager 26, and electronic mail messenger 27communicate by adding, marking, and updating records in the variousdatabases. Each of these components periodically checks at least one ofthe databases to see if anything relevant to their respective functionshas changed and take action accordingly. However, the components couldsend direct messages between themselves or call each other by means ofprogram subroutines to signal important events that would require one orthe other component to update its state.

One skilled in the art to which the present invention pertains willfurther recognize that a variety of different auction formats may beimplemented using the basic technique described above. The simplest isthe “Standard Auction” format, whereby the electronic auction systemawards the merchandise to the top bidder or bidders in accordance withtheir bids once bidding has stopped. Using this format, if there is aplurality of a specific item, the system awards the merchandise to thetop bidders. Bidders may bid on more than one unit, and differentsuccessful bidders will, in general, pay different prices for an item.

FIG. 9 illustrates the Standard Auction format where bid manager 55,shown in FIG. 6, determines which bids to mark as successful orunsuccessful, as shown in step 66 in FIG. 7. Bid manager 55 begins bysorting 91 the bids by amount of the bid. If there are bids remaining tobe processed, determined at step 97, the highest remaining bid isselected 98 to be checked. If the bid is below the minimum bid allowedfor the particular merchandise item, as determined at step 93, the bidis marked 99 as unsuccessful. If not, the bid is checked 94 to see ifthe quantity may be satisfied. A bid may be satisfied if the quantity ofthe item bid upon is available. This information is available fromauction database 29. If not, then the bid is marked 99 as unsuccessful.Optionally, the system could ask the user if a lesser quantity than bidupon will be acceptable. If the bid quantity can be satisfied, asdetermined at step 94, then the bid is marked 95 as successful and theitem quantity remaining, recorded in auction database 29, is decremented96 by the bid quantity. After the quantity remaining is decremented 96,and if, as determined at step 97, there are still bids remaining to bemarked, the next highest bid is selected 98 and the steps of FIG. 9 arerepeated.

The electronic auction system of the present invention also provides a“Dutch Auction” format, wherein the electronic auction system awards themerchandise to all of the top bidders for whom there is availableinventory at the price bid by the lowest successful bidder. This formatmay be preferred by customers for being the most fair when a pluralityof a specific item is being auctioned. As with all bidding, there willbe a range of bids submitted. In the Dutch Auction format, the highestbidders are awarded the merchandise but at the same price for allsuccessful bidders, the price bid by the lowest successful bidder.

FIG. 10 illustrates the Dutch Auction format whereby bid manager 55shown in FIG. 6 determines which bids to mark 66 as successful orunsuccessful, as shown in FIG. 7. Bid manager 55 begins by sorting 111the bids by amount of the bid. If there are bids remaining to beprocessed, as determined at step 97 the highest bid is selected 98 to bechecked. If the bid is below the minimum bid allowed for the particularmerchandise item, as determined at step 93, the bid is marked asunsuccessful 99. If not, the bid is checked 94 to see if the bidquantity may be satisfied. If the bid cannot be satisfied, then the bidis marked as unsuccessful at step 99. If the bid quantity can besatisfied, then the bid is marked as successful at step 95 and the itemquantity remaining is decremented 96 by the bid quantity. At this timethe MinWin price is recorded 117. The MinWin price is the price abovewhich a new bidder must bid in order to be successful in the DutchAuction format were the auction to close at that moment. The MinWinprice is, in general, the bid price of the lowest bid that is marked assuccessful. After recording the MinWin price at step 117, where thereare still bids remaining to be marked, as determined at step 97, thenext highest bid is selected 98 and the steps of FIG. 10 are repeated.

The electronic auction system of the present invention also includes a“Progressive Auction” format, wherein the electronic auction systemawards the merchandise to the top bidders based on price bid. As withthe Dutch Auction format, the highest price bids are awarded themerchandise up to the quantity available of the item being auctioned.However, unlike the Dutch Auction format, the system awards themerchandise to the successful bidders at different prices depending onthe quantity bid. In a preferred embodiment, a successful bidder for asingle unit of an item is awarded the item at the price of the lowestsuccessful bid for a single unit of the item. A successful bidder for ahigher quantity of the same item is awarded the item at the price of thelowest successful bid at that quantity or any lower quantity. Forexample, a successful bidder for a quantity of rive would pay the lowestprice for any successful bid for quantity one through five of the item.The price paid for a given quantity is termed the “MinWin” price forthat quantity. The Progressive Auction format ensures that successfulbidders for a quantity of an item pay the lowest price paid by any othersuccessful bidder at that quantity level or below. Use of this formatleads to lower prices for those who successfully bid on largerquantities of an item, provides an impetus for volume buying, andtherefore leads to greater sales volume.

FIG. 11 illustrates the Progressive Auction format, wherein bid manager55 shown in FIG. 6 determines which bids to mark as successful orunsuccessful 66 as shown in FIG. 7. Bid manager 55 begins by sorting 131the bids by amount of the bid. If there are bids remaining to beprocessed, as determined at step 97, the highest bid is selected 98 tobe checked. If the bid is determined to be below the minimum bid allowedfor the particular merchandise item at step 93, the bid is marked asunsuccessful 99. If not, the bid is checked at step 94 to see if the bidquantity can be satisfied. If not, then the bid is marked 99 asunsuccessful. If the bid quantity is checked and found to be satisfiedat step 94, then the bid is marked as successful 95 and the itemquantity remaining is decremented 96 by the bid quantity. The MinWinprice is then recorded 137. The MinWin price is the price above which anew bidder must bid in order to be successful in the Progressive Auctionformat were the auction to close at that moment. The MinWin price is, ingeneral, the bid price of the lowest bid at the current bid quantity orlower that is marked as successful. After recording the MinWin price137, if there are still bids remaining to be marked, the next highestbid is selected 98 and the steps of FIG. 11 are repeated.

The electronic auction system also includes a “Buy Or Bid” formatwherein the electronic auction system awards merchandise to bidders whoplace bids at or above a posted selling price. The item remains for saleuntil the available quantity is purchased. Bids that are below theposted selling price are maintained in reserve by the system. If acertain sales volume is not achieved in a specified period of time, theelectronic auction system automatically reduces the price by apredetermined amount or a predetermined percentage of the price andupdates the merchandise catalog page accordingly. The lower price may beat or below some of the bids already in the bid database. If such bidsare present, they are then converted to orders and the quantityavailable is reduced accordingly. Similarly, if a certain sales volumeis exceeded in a specified period of time, the electronic auction systemautomatically increases the price by a set amount or by a set percentageof the price and updates the merchandise page accordingly. Theseautomatic price changes allow the seller to respond quickly to marketconditions while keeping the price of the merchandise as high aspossible to the sellers benefit.

FIG. 12 illustrates the Buy Or Bid format whereby bid manager 55, asshown in FIG. 6, determines which bids to mark as successful orunsuccessful 66, as shown in FIG. 7. Bid manager 55 begins by sorting151 the bids by amount. If there are bids remaining to be processed, asdetermined at step 97, the highest bid is selected 98 to be checked. Ifthe bid is below the current price of the merchandise item, asdetermined at 93, then the bid is marked 99 unsuccessful. If the bid isnot below the current price, as determined at 93, then the bid ischecked 94 to see if the bid quantity can be satisfied. If not, the bidis marked as unsuccessful 99. If the bid quantity can be satisfied, thenthe bid is converted into an order 155 at the current price of the itemand the item's quantity remaining is decremented 96. The bids remainingto be processed, as determined at 97, are then checked and the steps ofFIG. 11 are repeated. From time to time, the current price of themerchandise item may be raised or lowered either by manual input from anoperator or by automatically using the “markdown” feature describedbelow with reference to FIG. 14.

FIG. 13 illustrates in more detail the step of determining if the bidquantity can be satisfied 94. If the bid quantity is determined to beless than the available quantity of the merchandise item at step 171,then the test is found satisfied at step 174. If not, then the bid ischecked at 172 to see if the bidder is willing to accept a reducedquantity. Preferably, when placing a bid, the bidder indicates itswillingness to accept a partial quantity in the event that aninsufficient quantity of the item is available to satisfy the bid ifsuccessful. If the bidder is found willing to accept a reduced quantityat 172, then the test is found satisfied at 174. If not, the test failsat 173 and the bid is marked as unsuccessful at, for example, 99 in FIG.9.

The electronic auction system also includes a “markdown” feature,wherein the electronic auction system of the present invention awardsmerchandise to buyers who place orders at the currently posted sellingprice. The item remains on sale until the available quantity ispurchased. If a certain sales volume is not achieved in a specifiedperiod of time, the electronic auction system automatically reduces theprice by a set amount or a set percentage and updates the merchandisecatalog page accordingly. This lower price encourages buyers to takeadvantage of the new price. If a certain sales volume is exceeded in aspecified period of time, the electronic auction system automaticallyincreases the price by a set amount or a set percentage and updates themerchandise page accordingly. These automatic price changes allow thesystem to respond to market conditions while keeping the prices of themerchandise as high as possible to the seller's benefit.

FIG. 14 illustrates the Markdown price adjustment feature wherebyauction manager 26, as shown in FIG. 4, periodically adjusts 54 thesales prices or minimum bid prices, of the merchandise items accordingto a predetermined schedule as shown in FIG. 6. If more merchandiseitems are found in the merchandise database at 181, a merchandise itemis selected 183 for Markdown. If a Markdown event has occurred for theitem, as determined at 184, the item's price is adjusted 185 accordingto the schedule preset for the individual item. Alternatively, theadjustment could be relative to prices offered for the merchandise. Themerchandise item is then updated 186 in the database with the new saleprice or minimum bid price. The steps of FIG. 14 are then repeated foreach successive merchandise item in the merchandise database.

The electronic auction system of the present invention preferablyincludes a “Proxy Bidding” feature that may be applied to any of theauction formats described above. FIG. 7 fully describes auction manager26 including the Proxy Bidding feature. When Proxy Bidding is employed,a bidder places a bid for the maximum amount they are willing to pay.The electronic auction system, however, only displays the amountnecessary to win the item up to the amount of the currently high proxybids of other bidders. Typically, the currently high bids display anamount that is one bidding increment above the second highest bid orbids, although a percentage above the second highest bids may be used aswell. When a new bidder places a bid that is above a currently displayedhigh bid, the proxy feature will, in general, cause the currently highbid to move up to an amount higher than the new bid, up to the maximumamount of the currently high bidder's proxy bid. Once a new bidderplaces a bid in excess of the currently high bidder's proxy bid, the newbid becomes the current high bid and the previous high bid becomes thesecond highest bid. This feature allows bidders to participate in theelectronic auction without revealing to the other bidders the extent towhich they are willing to increase their bids, while maintaining controlof their maximum bid without closely monitoring the bidding.Participation is engaged in automatically on the bidder's behalf by theinventive system. The feature guarantees proxy bidders the lowestpossible price up to a specified maximum without requiring frequentinquiries as to the state of the bidding.

One skilled in the art to which the present invention pertains willrecognize that a variety of different auction formats may be implementedin addition to those described above. One skilled in the art will alsorecognize that the electronic auction system of the present inventioncan employ a “Floating Closing Time” feature whereby the auction for aparticular item is automatically closed if no new bids are receivedwithin a predetermined time interval. This feature would typically beimplemented in a manner similar to that used to close auctions of olditems, as shown at step 53 in FIG. 6. This feature forces the biddingactivity to occur within a shorter amount of time than would otherwisebe achieved because bidders are aware that the item will automaticallyclose if no new bids have been received in a timely manner. Thus,bidders have an incentive to stay active in the bidding process to avoidclosure of an item before maximum, and most potentially winning, bidshave been entered. The Floating Closing Time feature also allows moreitems to be auctioned during a period of time since each item is closedonce bidding activity ceases; the bidding period is not protracted to anartificial length as is the case when an item closes at a preset dateand time. The Floating Closing Time feature of the present invention maybe employed either in conjunction with or independent of a fixed closingtime for an item. When employed in conjunction with a fixed closingtime, the auction is closed either when the preset fixed time period hasexpired for the item or when no bidding activity has occurred within apreset time interval. This forces the bidding to cease at a particulartime in case the bidding activity becomes artificially protracted.

A general description of the present invention as well as a preferredembodiment of the present invention has been set forth above. Thoseskilled in the art to which the present invention pertains willrecognize and be able to practice additional variations in the methodsand system described which fall within the teachings of this invention.For example, although a preferred embodiment of the present inventionchooses winning bids according to monetary amount included in the bid,preference for bids may also be determined according to time ofsubmission, quantity of merchandise bid for, total bid value, or someother combination of these characteristics. Accordingly, all suchmodifications and additions are deemed to be within the scope of theinvention which is to be limited only by the claims appended hereto.

While various embodiments have been described above, it should beunderstood that they have been presented by way of example only, and notlimitation. Thus, the breadth and scope of a preferred embodiment shouldnot be limited by any of the above-described exemplary embodiments, butshould be defined only in accordance with the following claims and theirequivalents.

1.-17. (canceled)
 18. A system for procuring business in an e-commerceenvironment, comprising: a processor; a computer-readable mediumcontaining instructions for configuring the processor to perform amethod for procuring business in an e-commerce environment, the methodcomprising: registering a plurality of suppliers utilizing an on-lineregistration form; receiving contracts from customers; allowing accessto the contracts by the suppliers utilizing a network; receiving bids onthe contracts from the suppliers utilizing the network and an online bidform; automatically informing the customers of the bids; a paymentmodule configured to receiving payment from the suppliers; and payingthe customers a portion of the payment received from the suppliers. 19.The system as recited in claim 18, wherein the payment is based on apercentage of price-related terms and conditions of the contracts. 20.The system as recited in claim 18, further comprising paying thecustomers.
 21. The system as recited in claim 18, wherein the contractsincludes a work order for goods or services.
 22. The system as recitedin claim 18, further comprising providing a guarantee to the customersregarding at least one supplier with respect to a provision orfulfillment of the bid received therefrom for reducing an associatedrisk, wherein the guarantee is provided as a function of at least oneaction by the at least one supplier.
 23. The system as recited in claim18, wherein the contracts are received from customers via an on-lineform utilizing a network, wherein the contracts are requests for atleast one of goods and services, and the network includes the Internet.24. The system as recited in claim 18, further comprising requiring thesuppliers to secure a performance bond relating to the contracts. 25.The system as recited in claim 18, further comprising validating thebids to ensure data values entered are credible, and if a bid isdetermined to be invalid, returning an error message to the supplierthat made the bid, where the error message itemizes at least one errorfound in the bid.
 26. The system as recited in claim 18, furthercomprising performing a qualification process for determining theintegrity of the plurality of suppliers.
 27. The system as recited inclaim 18, further comprising limiting the bids based on at least one ofa financial disincentive approach and a behavior modeling algorithm. 28.A system for procuring business in an e-commerce environment,comprising: a processor; a computer-readable medium containinginstructions for configuring the processor to perform a method forprocuring business in an e-commerce environment, the method comprising:registering a plurality of suppliers utilizing an on-line registrationform: receiving contracts from customers; allowing access to thecontracts by the suppliers utilizing a network; receiving bids on thecontracts from the suppliers utilizing the network and an online bidform; automatically informing the customers of the bids; requiring thesuppliers to secure a performance bond relating to the contracts; andreceiving payment from the customers.
 29. The system as recited in claim28, wherein the payment is based on terms and conditions of thecontracts.
 30. The system as recited in claim 28, further comprisingperforming a qualification process for determining the integrity of theplurality of suppliers.
 31. The system as recited in claim 28, furthercomprising limiting the bids based on at least one of a financialdisincentive approach and a behavior modeling algorithm.
 32. The systemas recited in claim 28, further comprising requiring the suppliers tosecure a performance bond relating to the contracts for reducing therisk of the suppliers failing to fulfill the contracts.
 33. A system forprocuring business in an e-commerce environment, comprising: aprocessor; a computer-readable medium containing instructions forconfiguring the processor to perform a method for procuring business inan e-commerce environment, the method comprising: registering aplurality of suppliers utilizing an on-line registration form; receivinggoods-related information from customers, the goods-related informationbeing associated with goods; allowing access to the goods-relatedinformation by the suppliers utilizing a network; receiving offersrelating to the goods from the suppliers utilizing the network and anonline offer form; automatically informing the customers of the offers;receiving payment from the suppliers; and paying the customers a portionof the payment received from the suppliers.
 34. The system as recited inclaim 33, wherein the goods-related information includes at least oneorder.
 35. The system as recited in claim 33, wherein the goods-relatedinformation includes at least one contract.
 36. The system as recited inclaim 33, wherein the offers include bids.
 37. The system as recited inclaim 36, wherein the bids are directly related to the goods.
 38. Thesystem as recited in claim 37, wherein the bids are directly related toan actual cost of the goods.
 39. The system as recited in claim 33,wherein the suppliers are indicated as being bonded.
 40. The system asrecited in claim 33, wherein the action includes securing of aperformance bond.
 41. The system as recited in claim 33, furthercomprising providing a guarantee to the customers regarding at least onesupplier with respect to a provision or fulfillment of the bid receivedtherefrom for reducing an associated risk, wherein the guarantee isprovided as a function of at least one action by the at least onesupplier.
 42. The system as recited in claim 41, wherein the guaranteeinvolves a performance bond.
 43. The system as recited in claim 33,wherein automatically informing the customers of offers includes offersfrom the suppliers for the provision or fulfillment of the goods, theprovision or fulfillment of the goods being secured by a performancebond.